Global Financial Markets React to Brexit Vote

Hong Kong stocks dived on Friday morning after vote counting indicated a win for the “Leave” camp in the referendum on Britain leaving the European Union.

The Hang Seng index nosedived 4.67 per cent or 974.22 points, trading at 20,132.02 at Friday’s morning close. At one point, the index lost 1,023.34 points or 4.9 per cent. The H-share Index also fell 4.58 per cent or 402.21 points to 8,382.86.

Pound sterling fell sharply by more than 12 per cent in morning trade to its lowest level in 30 years on the Brexit news, with analysts believing the currency has no hope to bounce back in the near term.

Chinese yuan also fell to a five year low with onshore yuan down 0.54 per cent to trade at 6.6101 before bouncing back to 6.6091 yuan per US dollar at 12.30am, while the offshore yuan down 0.79 per cent to trade at 6.6360 yuan per US dollar.

All 50 constituent stocks that make up the Hang Seng index slumped on Friday morning. HSBC Holdings, the most heavily traded in Hong Kong, recorded the biggest loss among the 50, down 10.93 per cent close at HK$45.25 at the close of the Friday morning session…(read more)